STAND. COM. REP. NO. 175

Honolulu, Hawaii

RE: S.B. No. 1237

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 1237 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to reduce the cap amounts of the renewable energy technologies income tax credit.

Your Committee received testimony in opposition to this measure from Hawaiian Electric Company, Affordable Solar Contracting, Tesla, Sierra Club of Hawaii, Photonworks Engineering, Kauai Climate Action Coalition, Inter-Island Solar Supply, Alternate Energy Inc., Greenpath Technologies Inc., Grand Solar Inc., Neighborhood Power, Rising Son Solar LLC, Hawaii PV Coalition, Generac, Mercury Solar, PV Tech, Green Power Projects LLC, Hawaii Solar Energy Association, Solar Services Hawaii LLP, 350Hawaii, Climate Protectors Coalition, and forty-seven individuals. Your Committee received comments on this measure from the Department of Taxation, Hawaii State Energy Office, Hawaii Green Infrastructure Authority, Tax Foundation of Hawaii, Ulupono Initiative, and Hawaii Energy.

Your Committee finds that it is important to reduce the cap amounts of the renewable energy technologies income tax credit to allow for funding of other programs.

Your Committee has amended this measure by changing the effective date to January 1, 2022.

As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1237, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1237, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,

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GLENN WAKAI, Chair